Warner Music Group Corp. today announced its second-quarter financial results for the period ended March 31, 2023.
Financial Highlights
- Underlying Growth in Recorded Music Streaming Revenue Despite a Challenged Macroeconomic Environment
- Continued Momentum in Music Publishing Drives Double-Digit Revenue Growth
- Adjusted OIBDA Growth and Margin Improvement Underpinned by Financial Discipline
- Cost Savings to be Reinvested in Tech-Focused Initiatives and Expertise to Drive Long-Term Growth
For the three months ended March 31, 2023
- Total revenue increased 2% or 5% in constant currency
- Digital revenue increased 1% or 4% in constant currency
- Net income was $37 million versus $92 million in the prior-year quarter
- OIBDA decreased 19% to $207 million versus $255 million in the prior-year quarter or 16% in constant currency
- Adjusted OIBDA increased 4% to $286 million versus $274 million in the prior-year quarter or 8% in constant currency
- Cash from operating activities decreased 114% to a use of $6 million versus a source of $44 million in the prior-year quarter
“With continued momentum in music publishing, and a more robust schedule that includes the return of worldwide superstars and new artists breaking globally, we are optimistic about the second half of the year,” said Robert Kyncl, CEO, Warner Music Group. “As the music ecosystem continues to morph, and the use cases multiply, it only increases conviction in our tech-enabled strategy. In a highly proactive, fiscally responsible way, we’re investing in the artists, songwriters, team, and technology that will deliver continued growth and long-term success.”
“While macroeconomic, currency, and release slate headwinds continued to impact our revenue this quarter, our fiscal discipline enabled us to deliver solid Adjusted OIBDA growth and margin expansion,” said Eric Levin, CFO, Warner Music Group. “As we look to the future, we’ll combine A&R and marketing excellence with tech innovation to achieve greater efficiency, scale, and growth.”
